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TMI Blog2019 (2) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, we do not find any infirmity in the order passed by the Ld.CIT(A) in restricting the disallowance u/s. 14A to the exempt income received by the assessee. Claim for depreciation on the Bizerba Weighing Scales as part of computer - Held that:- We find that this issue has been decided against the assessee and in favour of the Revenue by the Tribunal upholding the disallowance made by the AO. The Tribunal held that Bizerba Weighing Scale is not part of the computer and therefore not entitled for depreciation @60% as claimed by the assessee. respectfully following the said decision, we uphold the disallowance made by the Assessing Officer in respect of Bizerba Weighing Scales. This ground of Revenue is allowed. Disallowance made u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of appeal of the Revenue for the Assessment Year 2011-12 is with regard to deletion of disallowance u/s.14A r.w. Rule 8D of I.T. Rules. 3. At the outset, Learned Counsel for the assessee submitted that Assessing Officer invoking provisions of section u/s. 14A r.w. Rule 8D made disallowance of ₹.116 Crores and the Ld.CIT(A) restricted the disallowance only to the exempt income received by the assessee for the Assessment Year under consideration. Therefore, he submitted that there is no infirmity in the order passed by the Ld.CIT(A). 4. Ld. DR vehemently supported the order of the Assessing Officer. 5. We have heard the rival submissions, perused the orders of the authorities below. On a careful reading of the Ld.CIT(A) order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance made by the Assessing Officer. The Tribunal held that Bizerba Weighing Scale is not part of the computer and therefore not entitled for depreciation @60% as claimed by the assessee. respectfully following the said decision, we uphold the disallowance made by the Assessing Officer in respect of Bizerba Weighing Scales. This ground of Revenue is allowed. 9. In the result, appeal of the Revenue is partly allowed. ITA.No. 6048/MUM/2016 6175/MUM/2016 10. The appeal filed by the Revenue for the Assessment Year 2012-13 is against the order of the Ld.CIT(A) in deleting the disallowance made u/s. 14A and depreciation on Weighing Scale and the appeal of the assessee is against the action of the Ld.CIT(A) in sustaining the suomoto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Pr.CIT v. M/s. Ballarpur Industries Limited, the Hon'ble High Court of Bombay at Nagpur Bench in ITA.No. 51 of 2016 dated 13.10.2016 held that, in order to make disallowance u/s. 14A there should be an income which does not form part of total income and therefore since the assessee earned no exempt income there shall not be any disallowance u/s. 14A of the Act. Respectfully following the said decision, we uphold the order of the Ld.CIT(A) in deleting the disallowance made u/s. 14A. Grounds raised by the Revenue on this are rejected. 14. Coming to the issue of higher depreciation on Weighing Scale the same is decided against the assessee by the ITAT in ITA.No. 3572/MUM/2012 dated 27.11.2017. Following the said order, we uphold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had out of abundant caution made disallowance u/s.14A of the Act in the computation of income in accordance with Rule 8D, we submit that such disallowance should not be made. The disallowance made by us was not only out of abundant caution should not be considered as our acquicience to such disallowance. The intention of section 14A is to disallow expenditure incurred in relation to income which does not form part of total income (i.empt income). Therefore, it seems only logical that unless there is exempt income in a particular year, section 14A should not trigger for that year. However, subsequently, in the following cases, various High Courts have taken a view that unless there is exempt income in a year, no disallowance u/s 14A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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